BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Comprehensive Income for the financial period ended

31 March 2012 The figures have not been audited. Individual quarter Current year Preceding year quarter to quarter to 31 March 31 March 2012 2011 RM000 Revenue 155,042 RM000 137,185 Cumulative quarter Current year Preceding year to to 31 March 31 March 2012 2011 RM000 155,042 RM000 137,185

Other operating income

6,164

4,227

6,164

4,227

Operating profit before finance costs, depreciation, amortisation and tax Depreciation and amortisation Profit from operations Finance costs

35,514 (7,028) 28,486 (11,101)

26,158 (7,051) 19,107 (12,123)

35,514 (7,028) 28,486 (11,101)

26,158 (7,051) 19,107 (12,123)

Share of results of associates Share of results controlled entities of jointly

138

115

138

115

(31) 17,492 (5,771) 11,721

719 7,818 (4,158) 3,660

(31) 17,492 (5,771) 11,721

719 7,818 (4,158) 3,660

Profit before taxation Tax expense Profit for the period Other comprehensive income Exchange differences on translating foreign operations Total comprehensive income for the period

(1,000) 10,721

612 4,272

(1,000) 10,721

612 4,272

BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Comprehensive Income for the financial period ended 31 March 2012 continued The figures have not been audited. Individual quarter Current year Preceding year quarter to quarter to 31 March 31 March 2012 2011 RM000 Profit/(loss) attributable to: Equity holders of the Company Non-controlling interests RM000 Cumulative quarter Current year Preceding year to to 31 March 31 March 2012 2011 RM000 RM000

12,623 (902) 11,721

4,254 (594) 3,660

12,623 (902) 11,721

4,254 (594) 3,660

Total comprehensive income/(loss) attributable to: Equity holders of the Company Non-controlling interests

11,623 (902) 10,721

4,866 (594) 4,272

11,623 (902) 10,721

4,866 (594) 4,272

Earnings per share attributable to equity holders of the Company: basic (sen) diluted (sen) [See Part B Note 12(b)]

2.6 2.1

0.9 0.7

2.6 2.1

0.9 0.7

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the audited financial statements for the year ended 31 December 2011 and the explanatory notes attached to this interim financial report.

BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Financial Position as at 31 March 2012 The figures have not been audited. (Unaudited) As at 31 March 2012 RM000 ASSETS Non-current assets Property, plant and equipment Land held for property development Investment properties Goodwill Investment in associates Investment in jointly controlled entities Debt recoverable from an unquoted entity Receivables Deferred tax assets Post-employment benefit surplus Current assets Inventories Property development costs Tax recoverable Trade receivables Other receivables Derivative financial instruments Short term deposits Cash and bank balances (Audited) As at 31 December 2011 RM000

563,708 94,129 1,072,556 3,896 899 26,019 6,296 68,903 13,532 3,672 1,853,610 178,674 663,637 22,598 141,904 180,811 102 280,088 35,889 1,503,703 0 3,357,313

568,369 93,754 1,072,989 3,896 762 26,023 6,296 68,044 13,742 3,672 1,857,547 182,269 627,728 24,911 159,522 164,680 0 316,359 29,538 1,505,007 220 3,362,774

Non-current classified as assets held for sale TOTAL ASSETS EQUITY AND LIABILITIES Equity attributable to equity holders of the Company Share capital Share premium Foreign currency reserve Retained earnings Non controlling interests Warrant reserve Total equity

488,443 245,314 (12,549) 1,089,839 1,811,047 139,646 26,649 1,977,342

488,393 245,303 (11,549) 1,077,216 1,799,363 140,548 26,655 1,966,566

BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Financial Position as at 31 March 2012 - continued The figures have not been audited. (Unaudited) As at 31 March 2012 RM000 Non-current liabilities Post-employment benefit obligations Provisions for other liabilities Deferred tax liabilities Borrowings Current liabilities Trade payables Other payables and provisions Derivative financial instruments Taxation Borrowings 10,099 15,027 19,841 724,667 769,634 113,579 210,613 0 3,736 282,409 610,337 1,379,971 3,357,313 (Audited) As at 31 December 2011 RM000 10,085 14,857 18,244 762,643 805,829 125,857 213,763 331 3,025 247,403 590,379 1,396,208 3,362,774

Total liabilities TOTAL EQUITY AND LIABILITIES Net assets per share attributable to equity holders of the Company (RM)

3.71

3.68

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the audited financial statements for the year ended 31 December 2011 and the explanatory notes attached to this interim financial report.

BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Changes in Equity for the financial period ended 31 March 2012 The figures have not been audited.

Attributable to equity holders of the Company Foreign currency reserve RM'000 (11,549) (1,000) Noncontrolling Sub-total interests RM'000 RM'000 1,799,363 11,623 140,548 (902)

Share capital RM'000 At 1 January 2012 Total comprehensive income for the period Transactions with owners: - Conversion of warrants to ordinary shares Balance as at 31 March 2012 50 488,443 488,393 0

Share premium RM'000 245,303 0

Retained earnings RM'000 1,077,216 12,623

Warrant reserve RM'000

Total equity RM'000

26,655 1,966,566 0 10,721

11 245,314

0 (12,549)

0 1,089,839

61 1,811,047

0 139,646

(6)

55

26,649 1,977,342

BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Changes in Equity for the financial period ended 31 March 2012 continued The figures have not been audited.

Attributable to equity holders of the Company Foreign currency reserve RM'000 (12,112) 612 Noncontrolling Sub-total interests RM'000 RM'000 1,736,260 4,866 138,469 (594)

Share capital RM'000 At 1 January 2011 Total comprehensive income for the period Transactions with owners: - Conversion of warrants to ordinary shares - Subscription of additional shares in a subsidiary Balance as at 31 March 2011 82 0 486,270 486,188 0

Share premium RM'000 244,823 0

Retained earnings RM'000 1,017,361 4,254

Warrant reserve RM'000

Total equity RM'000

26,915 1,901,644 0 4,272

18 0 244,841

0 0 (11,500)

0 0 1,021,615

100 0 1,741,226

0 250 138,125

(10) 0

90 250

26,905 1,906,256

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statements for the year ended 31 December 2011 and the explanatory notes attached to this interim financial report.

BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Cash Flow for the financial period ended 31 March 2012 The figures have not been audited. Current year to 31 March 2012 RM000 Cash flows from operating activities Net profit for the period Adjustments for non-cash and non-operating items Changes in working capital Net change in current assets Net change in current liabilities Development expenditure incurred Capital commitment reserves received/(utilised) Staff retirement benefits paid Tax refund Tax paid Net cash flow (used in)/from operating activities Cash flows from investing activities Proceeds from disposal of property, plant and equipment Proceeds from disposal of investment properties Acquisition of land held for property development Purchase of property, plant and equipment Proceeds from disposal of non-current assets held for sale Interest received Subsequent expenditure incurred on investment properties Net cash flow from/(used in) investing activities Cash flows from financing activities Proceeds from term loan Proceeds from revolving credit Proceeds from subscription of shares in a subsidiary by minority interest Proceeds from issuance of shares from conversion of warrants Repayment of term loans Proceeds from bankers acceptance Repayment of commercial papers Hire purchase principal payments Interest paid Financing expenses Net cash flow used in financing activities Net change in cash and cash equivalents Cash and cash equivalents at 1 January Effects of exchange rate changes Cash and cash equivalents at 31 March 11,721 20,031 31,752 (29,635) (15,987) (374) 55 (252) 737 (1,901) (15,605) (2,425) 3,165 740 3,000 55 (15,581) 8,015 (192) (14,349) (141) (19,193) (34,058) 343,080 (55) 308,967 Preceding year to 31 March 2011 RM000 3,660 19,477 23,137 306,266 31,985 (42) (1,590) (70) (3,631) 356,055 40 1,035 (164,775) (6,353) 7,135 569 (1,141) (163,490) 128,676 10,000 250 90 (189,060) 9,214 (50,000) (195) (9,689) (5,615) (106,329) 86,236 56,888 (39) 143,085

BANDAR RAYA DEVELOPMENTS BERHAD (5521-A) Condensed Consolidated Statement of Cash Flow for the financial period ended 31 March 2012 continued The figures have not been audited. Current year to 31 March 2012 RM000 Cash and cash equivalents comprise: Short term deposits Cash and bank balances Bank overdraft (see Part B Note 9) 280,088 35,889 (7,010) 308,967 Preceding year to 31 March 2011 RM000 120,674 24,612 (2,201) 143,085

Included in cash and cash equivalents is an amount of RM51.9 million (2011: RM32.2 million) which are monies subject to usage restriction. These are monies held under Housing Development Accounts pursuant to Section 7A of the Housing Development (Control & Licensing) Act, 1966 which can only be used for specific purposes allowed for under the Housing Developers (Housing Development Accounts) Regulations, 1991 and monies set aside for purposes of capital maintenance of the Groups strata-titled development projects. The Condensed Consolidated Statement of Cash Flow should be read in conjunction with the audited financial statements for the year ended 31 December 2011 and the explanatory notes attached to this interim financial report.

PART A : Explanatory notes pursuant to FRS 134 1. Basis of preparation The interim financial statements have been prepared under the historical cost convention except for investment properties, derivative financial instruments, available-for-sale investments and financial assets held for trading which have been stated at fair value. The interim financial report is unaudited and has been prepared in accordance with the requirements of FRS 134: Interim Financial Reporting and paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities). The interim financial report should be read in conjunction with the audited financial statements of the Group for the year ended 31 December 2011. These explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the financial year ended 31 December 2011.

2. Changes in Accounting Policies The Group falls within the scope definition of Transitioning Entities. Transitioning Entities will be allowed to defer adoption of the new Malaysian Financial Reporting Standards (MFRS) Framework for an additional one year. Adoption of the MFRS Framework by Transitioning Entities will be mandatory for annual periods beginning on or after 1 January 2013. Accordingly, the Group will be required to prepare financial statements using the MFRS Framework in its first MFRS financial statements for the year ending 31 December 2013. For the financial year ending 31 December 2012, the Group will continue to prepare financial statements using Financial Reporting Standards (FRS). The significant accounting policies adopted are consistent with those of the audited financial statements for the financial year ended 31 December 2011, except for the adoption of the following Financial Reporting Standards (FRS), Issues Committee (IC) Interpretations and amendments to FRS and IC Interpretations which are relevant to the Groups operations with effect from 1 January 2012 :Revised FRS 124: IC Interpretation 19: Amendments to IC Interpretation 14: Amendment to FRS 7: Related Party Disclosures Extinguishing Financial Liabilities with Equity Instruments FRS 119 - The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction Financial Instruments: Disclosures on Transfers of Financial Assets

The adoption of the above standards and interpretations are not expected to have any significant impact on the financial statements of the Group in the year of initial application.

3. Audit report of preceding annual financial statements The audit report of the Groups financial statements for the financial year ended 31 December 2011 was not subject to any qualification.

4. Seasonality or cyclicality of interim operations Demand for properties is generally dependent on the national economic environment. Demand for particleboard and related products is seasonal and is also affected by national as well as global economic conditions.

5. Exceptional items There were no unusual items affecting assets, liabilities, equity, net income, or cash flows during the financial period ended 31 March 2012.

6. Change in estimates There were no changes in estimates that have had a material effect for the financial period ended 31 March 2012.

7. Issuance and repayment of debt and equity securities There were no issuance, cancellations, repurchases, resale and repayment of debt and equity securities during the financial period ended 31 March 2012 except for the Companys issuance of 50,150 ordinary shares of RM1.00 each for cash, arising from the exercise of BRDB Warrants 2007/2012 at the exercise price of RM1.10 per ordinary share.

8. Dividends paid There were no dividends paid for the financial period ended 31 March 2012.

9. Segmental reporting By operating segment Revenue Current year Preceding year to to 31 March 2012 31 March 2011 RM000 RM000 Property Property development Property investment Others Manufacturing Profit/(loss) from operations Current year Preceding year to to 31 March 2012 31 March 2011 RM000 RM000

64,622 16,726 81,348 73,694 155,042

53,929 14,312 3,657 71,898 65,287 137,185

19,145 8,498 (7) 27,636 850 28,486

11,017 7,018 (130) 17,905 1,202 19,107

By geographical segment The Group operates in the following geographical areas: Revenue Current Preceding year to year to 31 March 31 March 2012 2011
RM000 RM000

Total assets As at 31 March 2012

RM000

As at 31 March 2011
RM000

Capital expenditure Current Preceding year to year to 31 March 31 March 2012 2011
RM000 RM000

Malaysia Middle East and South Asia South East Asia Hong Kong and China Others

129,204 9,133 7,916 5,334 3,455 155,042

115,245 7,362 4,534 7,283 2,761 137,185

3,299,329 54,326 68 1 3,589 3,357,313

2,951,029 68,382 76 59 3,167 3,022,713

2,425 2,425

6,353 6,353

10. Valuations of property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment allowances.

10

11. Material events subsequent to the financial period ended 31 March 2012 There were no material events subsequent to the end of the financial period ended 31 March 2012.

12. Changes in the composition of the Group during the financial period ended 31 March 2012 There were no changes in the composition of the Group during the financial period ended 31 March 2012.

13. Changes in contingent liabilities and contingent assets There were no material changes in contingent liabilities and contingent assets since the last statement of financial position as at 31 December 2011 except for: As at 31 March 2012 RM000 Corporate guarantees (unsecured) issued by the Company to licensed financial institutions for banking facilities granted to certain subsidiaries As at 31 December 2011 RM000

332,135

348,545

14. Capital commitments Capital commitments not provided for in the financial statements as at 31 March 2012 were as follows: Authorised and contracted Authorised but not contracted Analysed as follows: Property, plant and equipment Investment properties RM000 7,948 25,147 33,095 32,847 248 33,095

11

PART B : Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of Bursa Malaysia Securities Berhad

1. Performance by operating segment Quarter on Quarter review Group revenue of RM155.0 million for the first quarter of 2012 was up 13% against RM137.2 million a year ago due to higher revenue in both property and manufacturing divisions. The Group recorded a 124% jump in pre-tax profit from RM7.8 million a year ago to RM17.5 million in the quarter under review, all from the property division. This is despite a loss of RM1.8 million from the manufacturing division under Mieco Chipboard Bhd (MIECO). Property Revenue in the property division in the first quarter of 2012 rose 13% to RM81.3 million against RM71.9 million a year ago as the Group sold more development properties. The increase in revenue was derived from sales of completed One Menerung and Troika apartments as well as progress recognition of sold units under construction: 6CapSquare and Verdana in Kuala Lumpur and Straits View Residences and Elita in Johor. Property investment revenue climbed 17% to RM16.7 million from RM 14.3 million a year ago with increased occupancy of Bangsar Shopping Centre, Menara BRDB and Troika Commercial. As a result, the property division increased its pre-tax profit from RM9.2 million a year ago to RM19.3 million in the quarter under review. Manufacturing MIECOs revenue increased 13% quarter-on-quarter to RM73.7 million from RM65.3 million a year ago due to higher demand and production capacity, especially of plainboard exports. However, despite better prices and sales volume, MIECO suffered a loss of RM1.8 million in this first quarter of 2012 against a loss of RM1.4 million a year ago, mainly due to higher raw material costs. Attractive latex prices have resulted in reduced replanting activities which have impacted rubberwood supply and prices, whilst increased demand for urea in the agriculture industry pushed up prices of glue, another raw material component in the production of particleboards. 2. Material change in profit before taxation for the quarter against the immediate preceding quarter Group pre-tax profit of RM17.5 million in the first quarter of 2012 decreased by 54% against RM38.0 million in the immediate preceding quarter mainly attributable to the RM32.3 million fair value gains on investment properties accounted for in the final quarter of 2011. Excluding the said fair value gains on investment properties, the Groups current quarter results would be better, mainly due to more development profits from sales of completed properties and higher progress construction of ongoing projects in Kuala Lumpur and Johor. MIECO swung from a pre-tax profit of RM1.4 million in the immediate preceding quarter to a pre-tax loss of RM1.8 million in the quarter under review. This was mainly due to the many festive holidays during the first quarter which is traditionally a low season for construction activity and demand. In addition, MIECO carried out its scheduled plant shutdown for repairs and maintenance during this quarter for the same reason. 3. Prospects for the current financial year The economic and political impasse in Greece has raised concern that Europes debt crisis will worsen and derail the global economic recovery. With renewed turmoil in financial markets and China reporting the slowest industrial output growth since 2009, there is anticipation of slowing economic activities globally despite signs of recovery in Japan and the United States. Property In spite of the external uncertainties, the property division is hopeful that resilient domestic consumption and government spending under the Economic Transformation Programme will sustain economic growth. The Group has planned several launches in Kuala Lumpur and Johor which are at various stages of readiness to market subject to obtaining the necessary regulatory approvals. Located in prime locations, these new projects incorporate the BRDB brand pillars of intelligent design, uplifting aesthetics and cosmopolitan living. In addition, the Groups key investment properties are expected to reach full occupancy which will increase the steady stream of recurring income to the Group.

12

Manufacturing MIECO is experiencing a more challenging market for particleboards and related products in view of the external uncertainties as well as higher raw material costs, resulting in compressed margins. The recommencement of Plant 3 has enabled MIECO to regain market share and with its increasing capacity utilisation, MIECO has become more cost effective and therefore, price competitive. MIECO has expanded its downstream facilities to cater for more value-added and environmentally-sensitive products which are rapidly becoming the global market preference, particularly to markets like Japan. The resilient property industry continues to support domestic demand for particleboards and its related products. Notwithstanding the challenges, the Group expects to achieve in the current financial year a comparable set of operating results to match that achieved in 2011. 4. Variance of actual profit from forecast profit The Group did not provide any profit forecast in a public document and therefore, this note is not applicable.

5. Profit before tax Current year Preceding year quarter to quarter to 31 March 31 March 2012 2011 RM000 RM000 Profit before tax is arrived at after charging/(crediting):Interest income Interest expense Net realised foreign exchange gain Net unrealised foreign exchange gain Depreciation and amortization Fair value loss on investment properties Gain on disposal of investment property Gain on disposal of land held classified under non-current assets held for sale Write back of allowance for inventories obsolescence (Write back)/write down of inventories Allowance for doubtful debts on receivables Gain on fair value of derivative financial instruments Current year to 31 March 2012 RM000 Preceding year to 31 March 2011 RM000

(4,017) 10,960 (604) (606) 7,028 433 (11) 218 (433)

(575) 7,478 (192) (438) 7,051 382 (147) (1,965) (1,134) 66 556 (170)

(4,017) 10,960 (604) (606) 7,028 433 (11) 218 (433)

(575) 7,478 (192) (438) 7,051 382 (147) (1,965) (1,134) 66 556 (170)

6. Tax expense/(credit) Current quarter to 31 March 2012 RM000 In respect of current year - Malaysian tax - Foreign tax Deferred taxation - Malaysian tax Tax expense/(credit) 3,965 3,965 1,806 5,771 Current year to 31 March 2012 RM000 3,965 3,965 1,806 5,771

The Groups effective tax rate for the current quarter is higher than the statutory tax rate due mainly to certain expenses not deductible for tax purposes.

13

7. Retained earnings As at 31 March 2012 RM000 Total retained earnings of the Company and its subsidiaries: - Realised - Unrealised Total share of retained earnings from associates: - Realised - Unrealised Total share of retained earnings from jointly controlled entities: - Realised - Unrealised As at 31 December 2011 RM000

335,731 378,812 714,543 1,559 -

323,315 379,460 702,775 1,421 -

1,014 (429) 716,687 373,152 1,089,839

785 (429) 704,552 372,664 1,077,216

Add: Consolidation adjustments Total Group retained earnings

The disclosure of realised and unrealised profits/(losses) above is solely for compliance with the directive issued by Bursa Malaysia Securities Berhad and should not be used for any other purpose.

8. Status of corporate proposals Save as disclosed below, there were no corporate proposals announced but not completed as at the date of this report. Proposed disposal of certain assets (Proposed Disposal) On 5 September 2011, the board of Directors of the Company received an offer from the Companys major shareholder, Ambang Sehati Sdn. Bhd. (Ambang Sehati) to acquire collectively the following assets (Assets) from the Group: CapSquare Retail Centre; Permas Jusco Mall; and 100% equity interest in BR Property Holdings Sdn. Bhd. which owns The Bangsar Shopping Centre and Menara BRDB. On 19 September 2011, the Directors of the Company agreed to the disposal of the Assets to Ambang Sehati for a total cash consideration of RM430 million. In addition, the Company proposed to distribute part of the disposal proceeds to the ordinary shareholders of the Company via a net cash dividend of RM0.80 per ordinary share. On 26 September 2011, the Company and Ambang Sehati mutually agreed to cease all negotiations and for the Company to undertake the Proposed Disposal by way of a tender exercise, whereby Ambang Sehati would be invited to participate in the tender. On 22 November 2011, the Directors of the Company decided that in view of Ambang Sehatis expressed intention to explore the possibility of increasing its stake in the Company via various means which may or may not result in a general offer, the tender exercise in respect of the Proposed Disposal would be deferred to the first quarter of 2012. On 27 March 2012, the Directors of the Company decided to proceed with the Proposed Disposal via tender.

14

9. Borrowings and debt securities The Groups borrowings are all denominated in Ringgit Malaysia except for a USD9.045 million term loan. The details of the Groups borrowings as at 31 March 2012 are as follows: Current Foreign currency USD000 2,700 Non-current Foreign currency RM000 USD000 641,158 83,366 6,345 143 724,667

Term loans (secured) Term loan (unsecured) Bonds (unsecured) Revolving credit (secured) Revolving credit (unsecured) Bankers acceptance (unsecured) Bank overdraft (unsecured) Hire purchase creditors (secured)

RM000 56,956 35,279 100,156 13,287 36,315 33,127 7,010 279 282,409

Finance cost of RM2.4 million arising from funds specifically borrowed for the acquisitions of freehold lands had been capitalised to property development costs during the financial period ended 31 March 2012.

10. Changes in material litigation As at the date of this report, there were no changes in material litigation since the last statement of financial position as at 31 December 2011.

11. Dividend The directors do not recommend the payment of any interim dividend for the financial period ended 31 March 2012. No interim dividend was declared for the same period last year.

15

12. Earnings per share Current year Preceding year quarter to quarter to 31 March 31 March 2012 2011 a) Basic Net profit attributable to equity holders of the Company (RM000) Weighted average number of ordinary shares in issue (000) Earnings per share (sen) b) Diluted Net profit attributable to equity holders of the Company (RM000) Weighted average number of ordinary shares in issue (000) Adjustment for effect of dilution on warrants issued (000) Weighted average number of ordinary shares for diluted earnings per share (000) Diluted earnings per share (sen) 12,623 488,404 117,977 4,254 486,218 112,071 12,623 488,404 117,977 4,254 486,218 112,071 12,623 488,404 2.6 4,254 486,218 0.9 12,623 488,404 2.6 4,254 486,218 0.9 Current year to 31 March 2012 Preceding year to 31 March 2011

606,381 2.1

598,289 0.7

606,381 2.1

598,289 0.7

BY ORDER OF THE BOARD BANDAR RAYA DEVELOPMENTS BERHAD

Ho Swee Ling Company Secretary Kuala Lumpur 22 May 2012

16